As much as I disagree with 'the bonds are in a bubble' crowd, I also understand the possibility that they could be correct. In a post I put on back in early Sept this year Bonds.... Yet Again I counted their bubble claims but I also gave quarter in which I stated the following:
"Well I am here to inform you that if the bond market bears are correct and U.S. Treasury market is in a bubble and does implode heaven help us for YOU WILL NEED THAT SHOTGUN, AMMO AND WATER more than your investments for damn sure!
I still believe all debt is either paid back on defaulted upon. We had the mother of all bubbles in debt and credit creation. This is not being paid back. The boat is sinking faster (deflation) than those in charge can pump the water out via money and credit creation (inflation).
I suggest you pray that the U.S. Treasury market holds together or you will need to prepare for Weimar Germany, Argentina, or Zimbabwe or any other example of chaos throughout history. Remember this is just one idiot blogger's simpletonian opinion on the subject."
Here is a chart I have shared with you before.
Do you remember it?
The time has come to have another look.
Do you see the failed rally in bonds into 1931 denoted on the chart as Quality Flight Bonds. My deepest worry, more than all the others I harbor combined (and they are numerous), is that our bond market today is at that same failed rally juncture as the chart above. I truly pray that I am wrong. You can look for yourself below and decide.
I hope I am wrong. The Fed thinks they can force investors into 'the Feds preferred assets'. The Fed's ignorance and arrogance is beyond comprehension, they will enslave us all if sane adults don't appear on the scene soon. One might want to familiarize ones self with insurance policies that go by the names Benelli and Glock. Let's just pray 87.50 holds on the TLT chart but if it doesn't he who panics first will have panicked best.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
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